Some 75% of Irish businesses say they expect to give their employees pay increases this year.

The figure from a PwC survey is up from 73% in 2014, and just 63% in 2013.

The 'Irish Reward Trends Snapshot Survey' says there is continued optimism for 2015.

It says where companies are planning to give pay increases, the typical planned rise is 2.2%.

But it also finds that there are notable talent shortages for specific skill sets, noting that companies are focusing on market trends again.

"Our survey indicates that the incidence of companies referencing external benchmark data and CPI...to determine pay budgets has almost doubled compared to last year’s survey," PwC says.

It also finds that as companies bring in salary increases, they are focusing on bonus plans to recognise outstanding performers.

It says that 8% of those surveyed gave information on some form of annual bonus plan.

One-third of these companies reviewed their plans in 2013, and the vast majority (88%) enhanced the bonus plan they were offering.

When asked what they are doing to address employee costs, almost half (49%) identified benefits as the key area under review.

In particular, pensions and health insurance have come under focus - with 18% of companies said to be reviewing their pension schemes.